DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

ITA 1561/KOL/2025Status: DisposedITAT Kolkata02 January 2026AY 2020-2171 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were initiated based on alleged documents and statements from third parties without independent verification by the Assessing Officer. The AO's reliance on unexamined material and lack of opportunity for cross-examination violated principles of natural justice.

What were the facts?

The assessee company, engaged in manufacturing and trading of iron and steel products, was subject to a search operation. Subsequently, the case was re-opened, and a notice under Section 148 was issued, leading to additions based on alleged undisclosed purchases. The assessee contested the validity of the notice and the additions made.

What were the issues?

The key issues were the validity of the reassessment proceedings initiated under Section 147/148 based on uncorroborated third-party information and the AO's failure to conduct independent inquiries and provide opportunities for cross-examination.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 132(1)

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Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, D BENCH, KOLKATA

Before: SHRI RAJESH KUMAR & SHRI PRADIP KUMAR CHOUBEY

For Appellant: Shri S. Jhajharia, FCA, Shri Sanat Kumar Raha, CIT-DR
For Respondent: Shri Sanat Kumar Raha, CIT-DR
Hearing: 29/10/2025Pronounced: 02/01/2026

Per Bench: These are the cross appeals filed by the assessee and revenue against the separate orders passed by the CIT(A), Kolkata-21, 28.02.2025 & 13.

The order continues below.

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